Goldman Sachs analyst David Tamberrino is keeping his Sell rating and $225 price target on Tesla, saying the recent strength in its Model 3 production and stock price has been inflated by the "combination of pent-up demand and the looming phase-out of the US Federal Tax Credit". The analyst believes that the company's Q4 deliveries will be supported by the 50% reduction in the $7.5K tax credit effective January 1st, 2019, but that pull-through of demand will also result in a "lull" starting with delivery figures in Q1 that "may not be fully made up by initial deliveries across Europe." Tamberrino further states that most of the "sustainable demand" for Model 3 is at the lower end of the price curve, and that Tesla's margins will likely be eroded "as time progresses".

Says it may still take three years for automaker to integrate Tesla AI technology into its model

Elon Musk says: "Regarding FSD Version 12, which is the pure AI-based self-driving, if you haven't experienced this, I strongly urge you to try it out, it's profound. And the rate of improvement is rapid. And we've now turned that on for all cars with the cameras and inference computer everything from Hardware 3 on in North America. So it's been pushed out to, I think, around 1.8 million vehicles, and we're seeing about half of people use it so far and that percentage is increasing with each passing week."

Check out this evening's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EARNINGSAudioEye (AEYE) up... To see the rest of the story go to thefly.com. See Story Here

Tesla (TSLA) is expected to report results on its fiscal first quarter on Tuesday, April 23, with a conference call scheduled for 5:30 pm EDT. What to watch... To see the rest of the story go to thefly.com. See Story Here

Wells Fargo lowered the firm's price target on On Semiconductor (ON) to $95 from $110 and keeps an Overweight rating on the shares ahead of quarterly results. The firm anticipates On to deliver a Q2 guide slightly below expectations as it adjusts to Tesla-specific (TSLA) production softness specific to image sensor and SiC sales.